Bookkeeping for farms and agriculture

What the books involve

• Sale proceeds: livestock account sales, grain contracts, wool and milk payments recorded at their gross amount, with agents' commission, freight and levies entered as costs.
• Rural merchandise accounts: fertiliser, seed, chemicals, fencing materials and animal health products bought on account and matched to the store's monthly statement.
• Contractors for harvesting, spraying, shearing and cartage entered as each invoice arrives and allocated to the enterprise or paddock the work was done on.
• Separate enterprises such as cropping, beef, sheep or dairy tracked in Xero or MYOB, so the income and costs of each part of the farm can be compared.
• Uneven cash flow: large receipts at harvest or sale time against steady costs in between, with seasonal finance drawdowns and repayments recorded so the bank position stays easy to read.
• Farm machinery: headers, tractors and spray rigs recorded as assets with their loan or lease repayments, and repair and parts bills kept apart from new purchases.